How To Solve This Common Orlando Short Sale Problem

Here is the most common problem that arises with short sales. There are multiple mortgages or liens on the property.

Any of the mortgage companies or lien holders have the right to veto the short sale. For example, we had a short sale with a first mortgage, a second mortgage, and a third position lien.

Click here to discover how other sellers successfully did a short sale and avoided foreclosure.

The third position lien was an old credit card judgment. It had to be paid off to sell the house. The first mortgage was only willing to pay $3,000 to any second mortgages or liens.

The second mortgage wanted $4,500. The credit card judgment wanted $5,000. How were we going to get the extra money for them?

We had to escalate the file with the first mortgage. We told them that they had two options.

Option one: Pay the first and second mortgage and net X.

Option two: Foreclose and lose an additional $15,000. I have a calculator that puts all these numbers together. In addition, I have the proof to back it up.

Here is an example of that proof. There was recent short sale where the first mortgage stubbornly refused to give enough money to the second mortgage. As a result, they lost around $45,000.

I found out about this house because I met the first buyers at an Open House. They were trying to buy a shortsale and were offering $272,000. The first mortgage was owed $337,500.

The 2nd was $70,000. The listing agent submitted the short sale offer to both companies. The first said they would only pay $1,000 to the second mortgage. The second mortgage wanted more.

The short sale dragged out for months. Finally the buyer paying $272,000 walked. The house was put back on the market. Meanwhile, home prices had dropped.

Now buyers were only willing to offer around $230,000 for the home. The house ended up selling for $229,000.